This assignment has a couple of steps. Below are more detailed
instructions.
You will fill out two tax forms: (1) US Federal Income Tax Forms W-4 and (2) US Federal Tax Form 1040 as if you were the John Doe. His tax information is in the scenario below.
Remember to sign the forms-given the limits of your technology, either sign, type or mention you tried to sign the forms. The IRS will return unsigned forms and charge you penalties.
Upload the 2 completed tax forms through canvas.
Go to the "Tax Return Worksheet" listed in the module as a second assignment. There you answer questions based on the numbers you got when filling out the tax forms.
SCENARIO (the story of fictional wage-earner John Doe)
- John Doe is single and has no children or dependents
- He does not file as head of household
- He does not hold multiple jobs.
- He has no income from interest, dividends or retirement income
- John is taking the Standard Deductionsand is NOT itemizing his deductions or making other adjustments to income
- He does not want additional withholding
- No one else can claim him as a dependent
- He has normal vision
- His name does not differ from that on his Social Security card
- John was born in 1999
- He lives in California
- John is a programmer for ABC Enterprises and has no other jobs
- His first day of employment was Jan 1, 2019
- He does not want an additional amount withheld from his paycheck
- He does not claim any exemptions from income taxes
- He has no "Other Credits" to claim on his W-4
- His employer paid a full year of health insurance for John==>> not applicable in 2020. Trump Admin got rid of penalties for not having health insurance
- John is filling out the form by himself and is not using a third party designee.
- He will contribute to the Presidential Election Fund
- The IRS did not send him an Identity Protection PIN
- All his earned income is reported on his W-2 from ABC Corp
1040 Line by Line
- Lines 2-6: He had no interest income or qualified dividends, nor any IRA withdrawals or Social Security benefits
- Line 7: He had no capital gains
- Line 8: He had no other income
- Line 10: He had no adjustments
- Line 12: Enter the Standard DeductionThey put a little wonky box to the left on the form. Do not go to Schedule A
- Line 13: He had NO qualified business deductions
- Line 16:Here you look up his tax due on his taxable income (line 15) in the Tax Tables in the IRS 1040 Instructions 2020 starting on page 66. Find his Taxable Income in the table, along the rows, then look at the "Single" column to find the tax due.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf(Links to an external site.)
Investopedia: How to read a tax table(Links to an external site.)
- Line 17: He had none (enter 0)
- Line 19-20: He had none (enter 0)
- Lines 23: He had no other tax payments. Enter 0.
- Lines 26-31: Enter zero
- Line 38: He does not owe a penalty because his tax due is less than $1,000 (See 2020 Instructions 1040 pg. 63.) Enter 0